OHFOOD: an Ohio Food Industries Input-Output Model (Year 2010, Version 13.0, June 2012)
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OHFOOD: An Ohio Food Industries Input-Output Model (Year 2010, Version 13.0, June 2012) by Thomas L. Sporleder1 Abstract OHFOOD, an acronym for Ohio food, is a sophisticated input-output model. The model is designed specifically to capture the interdependencies and linkages among various sectors and industries composing the complex economy of Ohio. The input-output model of Ohio's economy also maintains substantial detail on the food and agricultural sectors, referred to as the agrifood supply chain. The interindustry model describes the linkages among various sectors of the economy and is designed specifically to provide estimates of the economic importance of the food and agriculture-related cluster, along with the general manufacturing and service sectors, of the Ohio economy. In addition, OHFOOD provides several types of economic multipliers for detailed food and agriculture-related sectors of the economy. This abstract is a brief overview of the importance of food and agriculture to the state's economy, based on the interindustry model. The analysis indicates that for 2010 the food and agricultural cluster of Ohio's economy contributed 11.7 percent of the output, added 10.7 percent to Ohio’s gross state product, and accounted for 14.0 percent of the total employment in the Ohio economy. The agrifood cluster of the Ohio economy accounts for 1 of every 7 jobs in Ohio. Of these, over 93,000 jobs are in production agriculture with over an additional 59,000 just in food processing. In 2010, the Ohio economy generated a gross state product (GSP) of $477.7 billion. The food and agricultural cluster’s share of this GSP was $51.0 billion, or $10.70 of each $100 of Ohio GSP. For 2010 the contributions to GSP for the five components of the agrifood cluster are $2.0 billion for farm inputs, machinery, and professional services; over $3.0 billion from agricultural production; about $22.0 billion from processing; an additional $13.1 from food wholesaling and retailing; and another $10.8 billion in food services. Of these five major components comprising the food and agricultural-related cluster, the food processing component is the largest in terms of contribution to GSP, contributing $21.3 billion, or nearly 42% of the total contribution to the $51.0 billion GSP by the entire agrifood supply chain. Grocery retailing and wholesaling is the second largest sector in terms of GSP, accounting for another $13.1 billion, or nearly 26 percent to the total GSP of $21.0 billion by the entire food and agriculture cluster. The food service sector is notable for its contribution to employment. This sector accounts for over 419,000 jobs, or about 47 of every 100 jobs within the entire agrifood cluster. Total GSP improved by 1.3 percent in Ohio from 2008 to 2010. GSP attributable to the agrifood supply chain grew from $39.0 billion in 2008 to $51.0 billion in 2010, an increase of around 30 percent. Total employment declined over this period about 3 percent while the agrifood cluster gained 1 percent to over 900,000 jobs during this same period. 1 Thomas L. Sporleder is Professor of Agribusiness and Farm Income Enhancement Endowed Chair, Department of Agricultural, Environmental, and Development Economics, The Ohio State University. The author acknowledges computational and word processing support from Audrey R. Neal, undergraduate in Agribusiness and Applied Economics in the Department of Agricultural, Environmental, and Development Economics, The Ohio State University. Page 1 of 2 Table 1. Ohio: Output, Gross State Product, and Employment, 2010. Gross State Total Output Product (GSP) Employment $ Millions $ Millions Person Years Food & Related Agricultural Cluster Farm Inputs, Equip & Prof Services 7,916.3 2,003.2 32,419 Farming 8,809.5 3,041.7 93,196 Dairy Cattle & Milk Production 981.6 359.4 5,813 Beef Cattle Production 426.2 70.9 2,871 Poultry & Egg Production 755.9 140.7 1,195 Hogs & Other Farm Animalsa 664.3 326.2 13,930 Grain Production 2,267.2 490.7 36,305 Soybeans & Other Oil Crops 2,335.5 995.2 23,969 Misc Crops, Hay, Sugar, Tobacco & Nuts 366.3 115.0 1,579 Fruits & Vegetable Produiction 284.7 149.9 1,308 Greenhouse, Nursery & Floriculture Production 363.9 238.8 2,411 Forestry, Hunting & Fishing 363.8 155.0 3,816 Processing 49,373.3 21,978.7 110,447 Food Processing 35,087.0 21,317.8 59,035 Processed Meat, Fish, Poultry & Eggs 3,760.3 1,194.4 9,235 Dairy Processing 6,193.8 62.4 7,388 Processed Food & Kindred Products 15,543.6 15,270.0 33,969 Grain Milling & Flour 1,226.9 4,136.8 714 Fats & Oils Processing 1,300.1 146.6 323 Beverage Processing 7,062.3 507.7 7,404 Wood/Paper/Furniture Manufacturing 14,286.2 660.9 51,412 Food & Forestry Wholesale/Retail 18,085.6 13,131.6 245,146 Food Services 21,021.6 10,824.4 419,132 Total Agrifood Supply Chain (Food & Ag Cluster) 105,206.2 50,979.7 900,339 General Manufacturing & Service Sectors Mining 804.8 542.0 2,980 Stone, Clay & Glass 7,353.4 3,267.9 26,458 Metal Industries 42,389.2 14,592.7 132,634 Chemicals, Polymers & Petroleum 68,116.5 18,060.9 125,068 Construction 35,774.0 4,354.2 291,561 Textiles, Apparel, Accessories, Yarn & Leather 1,780.8 1,992.5 8,865 Machinery, Equipment & General Mfg 30,743.5 12,109.1 111,964 Motor Vehicles, Allied Equip & Services 61,299.7 16,928.8 211,808 Transportation & Communication 45,588.1 24,256.8 238,842 Computer & Electronic Products 17,867.1 9,174.5 114,493 Publishing & Information Technologies 11,841.9 5,354.7 57,124 Wholesale & Retail Trade (Mfg & Service Sectors) 55,733.1 40,466.7 609,020 Business, Professional & Personal Services 67,899.9 43,671.4 778,569 Financial, Legal & Real Estate 153,107.5 104,020.9 681,140 Leisure Activities & Entertainment 11,228.1 5,683.3 165,067 Health Care & Social Assistance 80,467.4 46,217.8 834,294 Electricity, Gas & Sanitary 16,474.8 11,025.6 39,882 Education Services 8,326.5 4,168.2 137,490 Government, Military & Non-Profit 76,788.8 60,831.4 978,131 Total of Mfg & Service Sectors 793,585.2 426,719.3 5,545,393 2010 Total Ohio Economy 898,791.4 477,699.0 6,445,732 Note: Each sector's output, gross state product, and employment are provided through U. S. Census of Manufacturing information. The wholesaling and retailing sector is one sector in the input-output model definition, but this sector is disaggregated for purposes of Table 1. The procedure used to estimate the percentage of all wholesale/retail payroll and employment that is food and agriculture-related is based on Ohio data (County Business Patterns 2009). The percentage of payroll (24.5%) is used to estimate the proportion of food- and agriculture-related output and GSP. The % of employment (28.5%) is used to allocate employment in a similar fashion. a Sheep, goats, horses, and miscellaneous livestock. b Excludes hotel/motel food service. c Includes diverse service items such as advertising, cleaning, barber and beauty shops, and funerals. Source: Computed Page 2 of 2 .